Himachal gets Rs 58k cr budget with focus on eco-tourism, green energy | Chandigarh News

Shimla: Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Monday presented a Rs 58,514 crore state budget, concentrating on rural economy, tourism, and green energy sectors.
The budget for FY 2005-26 also accounted for the highest expenditure on salaries and pensions of employees. An announcement was also made to release a 3% dearness allowance to state govt employees and pending arrears of pensioners aged between 70 and 75, in the first phase, starting from May 15 this financial year.
Presenting his third consecutive budget as finance minister, Sukhu, in his almost 3-hour long speech in Hindi, projected the hill state’s outstanding debt at Rs 1.03 lakh crore at the end of the 2025-26 fiscal, up from Rs 94,794 crore (revised estimates for 2024-25).
Sukhu, who drove his Maruti Alto car to the Vidhan Sabha to present the budget, mentioned that the total revenue deficit is projected to be Rs 6,390 crore in 2025-26, and the fiscal deficit is expected to be Rs 10,338 crore, which is 4.04% of the state’s gross domestic product (GDP). The estimated GDP of the state is Rs 2.32 lakh crore, and the state economy is projected to grow at 6.7%. Himachal’s per capita income is Rs 2.57 lakh.
The revenue receipts in the 2025-26 fiscal are estimated at Rs 42,343 crore, which is less than the revenue receipts of Rs 43,704 crore of the current fiscal, as per the revised estimates. Similarly, the total revenue expenditure in 2025-26 is projected to be Rs 48,733 crore against Rs 50,190 crore in the ongoing fiscal, as per the revised estimates.
The budget for FY 2025-26 proposed an allocation of a total of Rs 9,849 crore for the education sector, Rs 3,481 crore for the health sector, and Rs 2,533 crore for social security, women, children, and the welfare of other backward classes. Additionally, Rs 905 crore was allocated in the field of energy, Rs 673 crore for animal husbandry, and Rs 656 crore for urban development.
“The chief minister, while elaborating on how the revenue deficit grant to the hill state from the Centre, has reduced from Rs 10,949 crore in FY 2021-22 to Rs 3,257 crore in FY 2025-26. He also touched upon Rs 9,042 crore pending post-disaster needs assessment (PDNA) from the Centre and the state’s claim for its share in Bhakra Beas Management Board (BBMB) projects. However, he assured the House that his govt is committed to facing this challenge and will present the state’s stance before the Centre “to ensure that the state is not subjected to any injustice.” The chief minister also pointed out that nearly Rs 9,000 crore belonging to the state govt employees under the national pension scheme (NPS) share is yet to be retrieved from the Centre (National Securities Depository Limited).
Sukhu also underlined that as his govt inherited a debt of Rs 76,185 crore from the previous BJP govt, 70% of the loans taken by the current govt were utilised to repay the principal and interest of the old loans.
More honorarium for PRI representatives
As elections for the panchayati raj institutions (PRIs) in the hill state are due in Dec this year, Sukhu announced an increase in the honorarium of PRI representatives. With a hike of Rs 300 per month, the village pradhan will get Rs 7,500 per month honorarium, up-pradhan (Rs 5,100 per month), and member gram panchayat will now get Rs 1,050 per sitting of the panchayat. With an increase of Rs 500 per month, member zila parishad will get Rs 8,300 per month.
Focus on Rural Economy
With an increase of Rs 6 in the minimum support price (MSP) for milk, cow milk will now be procured at Rs 51 per litre and buffalo milk at Rs 61 per litre. Farmers delivering milk to the notified collection centre, they will also be provided with a transport subsidy of Rs 2 per litre.
The MSP for raw turmeric grown through natural farming will be given at Rs 90 per kg, and the. An MSP of Rs 40 per kg for maize and Rs 60 per kg for wheat produced through natural farming will be provided. To promote potato farming, a potato processing plant with a capacity of 500 kg per hour at a cost of Rs 20 crore will be established in Una district.
The CM announced the introduction of the “Agriculture Loan Interest Subvention Scheme” for farmers whose land is on the verge of being auctioned. The govt will introduce a one-time settlement policy through banks to repay an agricultural loan of Rs 3 lakh, and under this policy, 50% of the interest on the principal amount will be borne by the govt. He also emphasised that the govt has a target to bring one lakh farmers under natural farming in 2025-26.
The state govt also increased the daily wages of workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by Rs 20 from Rs 300 to Rs 320 per day.
Drugs, Law and Order
As the state is facing a serious problem of drug addiction, the chief minister announced the establishment of three additional de-addiction-cum-rehabilitation centres in 2025-26. Sukhu also announced the constitution of an anti-drugs special task force (STF) in 2025-26 and the introduction of the ‘Himachal Pradesh Prevention of Continuing Unlawful Activity and Control of Organised Crime Act, 2025′ in the Vidhan Sabha to prevent, control, and address illegal activities and organised crime.
Natural and Green Himachal
Sukhu announced that 3,000 diesel or petrol-based taxi vehicles will be converted into electric taxis (e-vehicles) in a phased manner, and the govt will provide up to a 40% subsidy for converting these vehicles into e-vehicles. The state govt proposed to procure 500 electric buses. Under the “Green Panchayat Scheme,” solar projects of 500 kilowatts will be set up in 100 panchayats. A target of 5,000 hectares for afforestation has been set for 2025-2026, with priority being given to fruit-bearing trees. The state will allocate 78 new eco-tourism sites and aims to generate revenue of nearly Rs 200 crore over the next five years through various eco-tourism activities. Sukhu announced the “Chief Minister Tourism Start-Up Scheme,” under which Himachali youth in non-tribal areas will be given an interest subvention of 4% on loans for constructing home stay units and hotels, while in tribal areas, an interest subvention of 5% will be provided.
Recruitment for 25,000 posts
The CM announced recruitment for 25,000 vacancies of various categories. The recruitment process for 1,000 vacant posts of police constables will begin in 2025-2026, and a total of 1,000 posts across various categories will be filled in colleges and schools. The CM also announced the inclusion of every girl turning 21 between Jan 1, 2025, and March 31, 2026, under the “Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojana,” and they will get Rs 1,500 per month.